The Asian market accounts for the majority of Vietnams export revenue. That said, ceramic export companies have a lot of advantages and experience when exporting to ASEAN markets. 1.2 Introduction Established in 1970, Minh Long I Co., Ltd. inherits the tradition of making ceramics for more than 100 years. Minh Long is one of the few brands making a breakthrough and leading prestige in the ceramic industry. Factory: Binh Duong Experience: Most of Minh Long ceramic products are exported to European countries such as Germany, Netherlands, Japan, and France... 1.3 The current situation of exporting ceramics to Thailand Basic information about Thailand: Thailand is a parliamentary (bicameral) democracy with a constitutional monarchy. Located in the heart of mainland Southeast Asia, Thailand is a country of mountains, hills, plains and a long coastline along the Gulf of Thailand (1,875 km) and the Andaman Sea (740 km). Thailand is a multiethnic nation with a population of 64.1 million, Thai is the national and official language, Thailand’s currency unit is the Baht.
NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ADVANCED EDUCATION PROGRAMS GROUP ASSIGNMENT ECONOMIES IN ASEAN Topic: Business project Class: International Economics EEP 61B Group: Instructor: Dr Nguyễn Bích Ngọc Hanoi, September 2022 Contents I Basic information 1.1 The current situation of exporting ceramics of Vietnam 1.2 Introduction .3 II Production .4 2.1 Production process 2.2 Features III, Procedures 3.1 Procedures .4 3.2 Channels IV Market research and analysis .6 4.1 Structure of Thailand's ceramic market 4.2 Market research .7 4.3 Marketing V Action Plan 5.1 Lean canvas model 5.2 Financial Plan I Basic information 1.1 The current situation of exporting ceramics of Vietnam Export turnover of ceramics 17 20 12 51 Europe Americas Asia Oceania The Asian market accounts for the majority of Vietnam's export revenue That said, ceramic export companies have a lot of advantages and experience when exporting to ASEAN markets 1.2 Introduction - Established in 1970, Minh Long I Co., Ltd inherits the tradition of making ceramics for more than 100 years Minh Long is one of the few brands making a breakthrough and leading prestige in the ceramic industry - Factory: Binh Duong - Experience: Most of Minh Long ceramic products are exported to European countries such as Germany, Netherlands, Japan, and France 1.3 The current situation of exporting ceramics to Thailand - Basic information about Thailand: Thailand is a parliamentary (bi-cameral) democracy with a constitutional monarchy Located in the heart of mainland Southeast Asia, Thailand is a country of mountains, hills, plains and a long coastline along the Gulf of Thailand (1,875 km) and the Andaman Sea (740 km) Thailand is a multi-ethnic nation with a population of 64.1 million, Thai is the national and official language, Thailand’s currency unit is the Baht - FTA: AANZFTA ( Asean- Australia- New Zealand) inforced in 2010 and ATIGA ( Asean trade in goods agreement) inforced in 1992, RCEP ( Regional Comprehensive Economic Partnership) inforced in 2022 II Production Ceramic bowl with patterns, product code: 69120000 2.1 Production process Step 1: Creating bowl shape The artists select the suitable clay, treat it and start making a raw bowl by putting it into a mold There are two ways to create bowls with mold which are print and pour Bowl after taking out of the mold, the workers began trimming the excess land, surface cleaning, connect the parts of the bowl together, punched and engraved or embossed motifs Step 2: Fire slightly the bowl The bowl is put into a kiln and fired at 800 degrees Step 3: Glazing and decoration After being fired slightly, the bowl is coated with enamel and drawn Drawing under the glaze: Drawing motif on the bowl, then the bowl coated transparent glazes Drawing on the glaze: Glazing on the bowl, then painting motifs Step 4: Baked the bowl Bowls are fired at 1200 degrees in approximately 12 hours or 24 hours depending on the bowl After firing, the bowl is cooled in a natural way, then taken out of the kiln This is a very important stage in deciding on the quality of bowls, especially bowls glazed Step 5: Acceptance The bowl is removed from the kiln, then inspected quality and classified The bowl production process lasts 10 to 15 days 2.2 Features - Durable enamel surface, super hard porcelain body, white glaze, shiny, difficult to stain, and the most vibrant, harmonious, and elegant colors - Affordable: Our ceramic bowls are more affordable than others because the bowls are mass-produced in a traditional village with low production cost - Applying modern nanotechnology: This is an environmentally friendly technology, ensuring hygiene for consumers In particular, not use harmful substances such as lead, absolutely safe for users' health III, Procedures 3.1 Procedures - All goods imported into Thailand must be reported to the Customs department Step 1: Register to use e-Customs system Step 2: Review controlled goods (Two separate checks need to be made before goods are imported: firstly, to identify if goods require an import permit, and secondly, to ascertain if goods are considered ‘red line’) Step 3: Submission and verification of declaration Step 4: Payment of duties and taxes Step 5: Inspection and release cargo - Custom clearance: by sea Documents that are required for import Original import declaration and its copy Release form Invoice Packing List Bill of Lading Insurance Premium Invoice Import license for controlled import goods as indicated in www.customs.go.th Certificate of origin (in case applying for tariff preferential) Any other document such as catalogue 3.2 Channels Like other exporters in other countries, Vietnamese ceramic goods are brought into Thailand by the following ways: - The first way: Exporting ceramics through representative offices of Thai companies Diagram 1: Distribution channel for imported ceramic products (1) Minh Long Company (2) Wholesaler (3) Convenient store (4) Supermarket (5) Specialized retail stores (6) Consumers - The second way: Sign contracts with Thai retailers BIG C Coming to Big C, we can easily buy all the necessary products for a family, with a wide variety of models and prices for consumers to choose from Big C is a destination that attracts a large number of tourists visiting Thailand TESCO LOTUS Tesco Lotus is like Big C in terms of product diversity Located close to residential areas, with products for daily consumption, Thai people prefer to shop at Tesco rather than in Big C supermarket full of tourists - The third way: Thai consumers order via the Internet: Many Thai tourists return home after traveling in Vietnam, still transferring orders via the Internet IV Market research and analysis 4.1 Structure of Thailand's ceramic market Interior decoration of countries 16% 2% 14% 51% China Malaysia Japan VietNam Others 17% - Competitive conditions: Some major countries exporting ceramic products such as China, Japan, and Malaysia 4.2 Market research Thailand market: - Market characteristics + The ceramics industry is one of the oldest industries in Thailand + Thailand stands among the leading importers of ceramics in the world + High demand for ceramics products, especially with pattern ceramics - Cultural environment: Thailand has a long tradition of producing and using patterned ceramics - Regulations and tariff: only MFN duties (import tax: 30% and Ad valorem equivalent tax: 30%) due to FTA there are no more tariff, no regulations - Economic conditions: + GDP per capita (2022): $6,379 + In 2020, Thailand imported $5.5M in Ceramic Tableware 4.3 Marketing - Promotion: + Advertising at exhibitions and fairs about ceramic tableware products such as ASEAN ceramics 2022 in Thailand + Customers can customize their ceramics for free if they buy or more sets + Using posters, and banners to promote traditional ceramic tableware products from Viet Nam V Action Plan 5.1 Lean canvas model 5.2 Financial Plan Sales and service provision 1,000,000 Revenue deductions 8975,42 Net revenue from selling goods and providing services (10= 01-02) 10 991024,58 Production cost 11 804871,4 Gross profit from sales and service provision (20=10 - 11) 20 186153,18 Revenue from financial activities 21 Financial expenses 22 14007,65 - In which: Interest expense 23 14007,65 Cost of sales 25 81793,56 Business administration expenses 26 53862,21 30 36489,74 11 Other income 31 5681,82 12 Other expenses 32 13 Other profit (40 = 31 - 32) 40 5681,82 14 Total accounting profit before tax (50 = 30 + 40) 50 42171,57 15 Current CIT expenses 51 16 Deferred CIT expenses 52 17 Profit after corporate income tax (60=50 – 51 – 52) 60 42171,57 18 Basic earnings per share (*) 70 19 Diluted earnings per share (*) 71 10 Net profit from operating activities {30 = 20 + (21 - 22) - (25 + 26)} X30 times up is to report the business performance of the whole year Present 1.Revenue: selling 10$/6 bowls/1 box The company carries 10000 boxes, each box includes 10 luxury boxes 1,000,000 USD 2.Revenue deduction: the company applies discount, preferential discount Production cost - Materials (clay + production additives + electricity, fuel) - Rent warehouse - Hire workers 446620 1.568 16097,48 - Equipment of production 50368,16 - Cost of finding a partner in Thailand 48756,45 - Import Tax Total 241461,42 804871,4 Unit: USD-8 Cost of sales - Cost of salary of employees in the sales department 2454,53 - Insurance cost - Cost of offering, introducing and advertising products 45,66 32154,46 - Cost of sales commission 828,79 - Product warranty costs 4030,05 - Cost of storage, packaging, transportation 37.894 - Cost of office materials, tools, depreciation of fixed assets used for sales 3148,1 - Expenses for services purchased from outside such as electricity, water, fax, for sales staff 1237,85 - Selling expenses in other currency Total 81793,56 Unit: USD-9 Business administration expenses - Cost of materials management: - Cost of office supplies: – Fixed asset depreciation expense: - Taxes, charges and fees: 1981,39 515,6 15987,45 5967,8 - Redundancy costs: 11847,79 - Cost of hired services: 16074,48 – Other monetary expenses: Total Unit: USD 1487,7 53862,21 ... official language, Thailand’s currency unit is the Baht - FTA: AANZFTA ( Asean- Australia- New Zealand) inforced in 2010 and ATIGA ( Asean trade in goods agreement) inforced in 1992, RCEP ( Regional... revenue That said, ceramic export companies have a lot of advantages and experience when exporting to ASEAN markets 1.2 Introduction - Established in 1970, Minh Long I Co., Ltd inherits the tradition... Marketing - Promotion: + Advertising at exhibitions and fairs about ceramic tableware products such as ASEAN ceramics 2022 in Thailand + Customers can customize their ceramics for free if they buy or